Revenue eBrief No. 207/25

03 November 2025

Income Tax Relief for Health Insurance Covering Medical and/or Dental Benefits

Tax and Duty Manual Part 15-01-14, which has been renamed Income Tax Relief for Health Insurance Covering Medical and/or Dental Benefits – has been updated throughout to advise that with effect from 1 January 2026, Revenue accept that the standard rate of tax (currently 20%) will apply to all health insurance policies providing medical cover, applied to the lesser of the premium paid or the applicable cap. This administrative practice seeks to recognise that most health insurance premiums providing medical cover are in excess of the current caps and that the premium available for tax relief is, in most cases equal to the cap. This administrative practice is subject to change based on a change in health insurance premium trends, the cap amount and other factors.

The following changes should be noted:

• Paragraph 2.1 (previously paragraph 2) has been updated to reflect the way in which TRS is granted on health insurance policies providing medical cover differs before and after 1 January 2026. The new paragraphs 2.2 and 2.3 provide guidance on TRS on health insurance policies providing medical cover and dental cover respectively, from 1 January 2026. The new paragraph 2.4 deals with TRS on all health insurance policies up to 31 December 2025.
• The Revenue contact details in respect of claims by authorised insurers in Paragraph 4, has been updated.
• Paragraph 6, which dealt with the tax treatment applicable to refunds of healthcare insurance premiums made due to Covid-19 circumstances, has been removed as it is no longer relevant.